* Piper Jaffray*
** I Know First algorithm**
*** Citi group***
XOMA weakness a buying opportunity:
Gevokuzimab is XOMA's crown jewel,with 11 separate indications currently being tested if you lump in it and partner Servier's clinical studies involving the drug, so today's shortfall certainly stings. The good news is that the data demonstrated favorability toward gevokizumab in more severe cases, so it may not be a total loss in EOA, but it certainly throws a shred of doubt over a number of its other purported indications. We should of course remember that different diseases can behave markedly different to the same experimental therapy, so XOMA's pipeline could also be perfectly fine with today's downside move potentially overblown.
Gevokuzimab is XOMA's crown jewel, with 11 separate indications currently being tested, 1 with no positive evidence but is good in more severe cases, so it may not be a total loss in EOA
An investor should keep eyes peeled for fresh data on gevokizumab in its other 10 indications. If all continues to progress well, especially in its ophthalmic disease targets, then XOMA should be just fine.
4G in China Mobile:
Up to now, though, China Mobile has been unable to offer Apple devices and so the much heralded agreement with Apple for the iPhone 5s has been seen as tipping point in the fortunes of China Mobile (as well as Apple whose shares rose 3.8 per cent on the announcement of the deal) of the mobile devices.
China Mobile therefore seems to positioning itself to win over new customers to 4G networks, recycle their existing 3G customers to new handsets and thus drive net revenue growth. In effect, China Mobile is using 4G to throw down the gauntlet to the other operators whose 3G revenues are robust and cannot see the same degree of revenue enhancement from 4G services. In fact the opposite may be true that 4G service may erode margins at both China Unicom and China Telecom rather than drive new net earnings.
The S&P 500 is about 0.5 percent above its 100-day moving average, a level that could provide support against further losses.
** Goldman Zach
*** I Know First system
are postive on the stock market in 2014, with all possible corrections.
With half of the S&P 500 companies having reported earnings so far, almost 70 percent have topped earnings expectations, above the long-term average of 63 percent, according to Thomson Reuters data. Two-thirds have exceeded estimates on revenue, above the historical average of 61 percent, though companies have generally been meeting or beating lowered expectations.
Gold rose +5.81% in the last month in a good agreement with gold-prediction site forecast.
The big question as gold miners earnings results begin to roll in next week -
"Can miners cut costs fast enough to satisfy investors?"
Carl Icahn on Twitter: "Just bought $500 mln more $AAPL shares. My buying seems to be going neck-and-neck with Apple's buyback program, but hope they win that race."
AAPL@506.5 is a steal for company with $160B in cash
It was a great buying opportunity.
The Turkish central bank hikes its overnight lending rate to 12% from 7.75% and the overnight borrowing rate to 8% from 3.5%, in a surprisingly strong move to defend the country's embattled currency and perhaps alleviate the declines in emerging market currencies.
Analysts say Turkey's decision is significant since the central bank had come across as reluctant to take action - indeed, it's political independence was not considered a certainty.
The turkish lira jumps more than 3% on the move, which has propelled Dow futures sharply higher and should spark a strong open for Asia's equity markets.
Back at levels just following its disappointing Q3 results, AIG - at 0.75x book (ex-AOCI) and 9.4x estimated 2015 EPS - is the best value in property and casualty, says BAML's Jay Cohen, noting the rest of the non-life sector trades at 1.17x book.
P&C did show a loss of $135M in Q3, but that compared to $441M a year earlier, and the combined ratio improved to 101.6 from 105 - not as good as AIG's profitable competitors, but there lies the room to get better. Allstate (ALL), by contrast, reported a profit in the business and a combined ratio of 93.1%.
Another catalyst will be the payoff in the form of lower expenses after two years of heavy investments in underwriting and financial reporting systems.
Finally, there's the sale of ILFC to AerCap which is expected to close in Q2. Cohen expects $10B in buybacks over the next two years, partly funded with $5.8B coming from the ILFC sale.
The World Bank expects global economic growth to accelerate to 3.2% in 2014 from 2.4% in 2013, led by advanced economies that seem "to be finally turning the corner" following the financial crisis. In its Global Economic Prospects report, the bank also forecast that the U.S. will expand 2.8% this year vs 1.8% last year. The outlook, along with strong U.S. retails yesterday, have helped boost world stocks today.